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Five Years Post-PASPA: The Spread of Legal Sports Betting in the USA
Five years ago, the Professional and Amateur Sports Protection Act (PASPA) was repealed by the Supreme Court, kicking off one of the fastest periods of gambling legalization ever seen in the USA.
The repeal of PASPA, which had prevented all but a handful of states from regulating sports betting, started a revolution in real money betting that has forever changed the US gambling industry.
Five years later, it’s time to look back at how the market has developed and the legal, economic, and social effects of this monumental change.
The Context: The Downfall of PASPA
PASPA was a federal law that came into effect in 1992. It included all states except Nevada, Oregon, Montana, and Delaware, which were excluded because their laws already had sports betting provisions.
PASPA outlawed sports betting in all other states, effectively banning it nationwide. This didn’t mean that sports betting wasn’t happening; it was just an underground, offshore activity.
PASPA remained in force until May 2018, when the Supreme Court ruled it unconstitutional. This was thanks almost entirely to the efforts of New Jersey, under the leadership of Governor Chris Christie, who brought the legal challenge after trying to legalize online sports betting in 2011 and 2014. New Jersey argued that part of PASPA violated the anti-commandeering doctrine (the tenth amendment), which, in overly simple terms, prevents the federal government from coercing states to adopt or enforce federal laws.
The District Court first heard New Jersey’s case, then the Third Circuit, with both ruling against them. However, upon appeal, the case was heard by the Supreme Court (SCOTUS) on May 14th, 2018. SCOTUS agreed that PASPA violated the anti-commandeering principle, rescinding the entire act and stating that PASPA was meant to work as a whole, meaning that if part of it was not legally viable, the whole act must be struck down.
Legal Outlook: 38 States Legal, 12 To Go
With PASPA gone, each state now had the right to decide whether to legalize sports betting, with a majority opting to. As of November 2023, 38 states have said yes, passing new laws that allow retail sports betting. Online sports betting is also available in 26.
There are 12 states left to legalize. Three of them (South Carolina, Alabama, and California) face strong opposition, and the remaining nine are looking to introduce bills in the 2024/2025 legislative sessions. North Carolina and Minnesota are tipped to be the next to join the fray, and Oklahoma introduced a new proposal two months ago.
The legal landscape remains complex, with different rules, regulators, and taxation regimes in each state. On top of this, in certain locations, the presence of tribal gaming compacts has conflicted with commercial interests (the ongoing case of Florida sports betting and tribal opposition in California serve as perfect examples).
Growth of Online Casinos – Not Going As Planned
While there was no guarantee, many industry experts and commentators hoped that the legalization of sports betting would soon be followed by online casino regulation. However, thus far, only six states have legalized online casinos: New Jersey, Delaware, Pennsylvania, Michigan, West Virginia, and Connecticut, the latest to join the ranks, passing HB 6451 in 2021. Since then, there’s been no further movement for online casinos.
Players outside the mentioned states may only use land-based casinos or free social gaming sites where available. Sweepstakes casinos are also available across the country, Idaho and Washington aside. As a legitimate gaming option, sweepstakes are taking the US by storm, but just like with real online casinos, players should use a review site to find the best options.
As sweepstakes casinos don’t require a license in the USA, expert advice such as Casino Cabbie’s Wow Vegas Online Casino Review highlights any security issues and the benefits and pitfalls of each site as well before players sign up, making them an invaluable resource.
Economics: More Than $220 Billion Spent On Sports Betting Since 2018
One of the biggest drivers of sports betting legalization is the promise of potential tax revenue. The US sports betting industry is enormous, and since 2018, more than $220 billion has been spent on wagers, contributing over $3 billion in state taxes. The revenue earned by states has been instrumental in funding local projects and new initiatives, as well as responsible gambling research and support.
More in-depth and up-to-date research focusing on the exact economic contribution of sports betting is thin on the ground, and the last comprehensive study by Oxford Economics was published in 2017. At the time, it detailed that the entire sports betting industry created over 216,671 jobs.
Due to the lack of current data, we’re left to turn to figures charting the impact of the entire gambling industry, which includes casinos and sports betting. According to statistics from the American Gaming Association in 2022, US gambling is a powerhouse industry, creating, in total, 1.8 million US jobs, with $104.2 billion in wages (these figures include the entire supply chain).
There can be no argument that over the last five years, US sports betting has been a substantial economic contributor, helping state governments recover from COVID-19, creating jobs, and stimulating economic growth.
Social: 77% of American Adults Support Legalization in their State
Legally and economically, things have changed rapidly in the States since the repeal of PASPA, but what about the social impacts?
Research shows that 85% of Americans think the removal of PASPA was correct, with 77% now supporting sports betting legalization in their state. Moreover, the number of Americans open to placing sports bets has grown by 24 million since 2019. With many enjoying the newly legal betting options available to them, public attitudes towards gambling as a whole have seemingly softened.
With many states also benefiting from increased government budgets brought through sports betting tax revenue, it’s important to recognize the benefits this has made to social provisions. Many states have used the influx to contribute more money to education funds and other social causes, like reducing homelessness.
A proportion of the money is also used to fund state problem gambling assistance, with many running state-based hotlines and counseling services. Nonetheless, in many cases, this funding is not enough to offset the increased rates of gambling harms caused by legalization.
Future Outlook: Challenges and Concerns
Looking forward, the US online sports betting industry has a projected compound annual growth rate (CAGR) of 17.33% for 2023-2027, meaning there’s much more to come. However, this rapid growth will lead to some challenges.
Offshore gambling has been a considerable issue for the legal sports betting market. In 2022, The American Gaming Association estimated that Americans wagered $63.8 billion with illegal bookies, costing $3.8 billion in lost gaming revenue and $700 million in state taxes.
While offshore gambling is reducing, the latest data shows that 77% of online sports bets are now placed through regulated operators, compared to just 44% in 2019. However, things are not all rosy, and 48% of those who bet offshore believe they are placing legal wagers.
Gambling addiction also poses a considerable threat to the sustainability of the entire US gambling industry, with some states recently reporting problem gambling rates over 6%, which is three times the national average (to contextualize this figure better, the UK has a problem gambling rate of 0.2%). High rates of problem gambling twinned with rapid growth potentially represent a ticking time bomb that could rock the entire US industry.
It’s undoubtedly been an incredible five years for US bettors and sportsbooks; as a newer gambling market, the US must now look to more mature gambling jurisdictions to see what player protection methods work best and implement them sooner rather than later.
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BETBY TAKES CENTER STAGE AT NEXT SUMMIT VALLETTA WITH A STANDOUT APPEARANCE BY MAGNUS CARLSEN
From the 7th to the 8th of May, the Mediterranean Conference Center in Valletta, Malta, transformed into the global hub of iGaming innovation at NEXT Summit Valletta, and BETBY made a memorable mark with a powerful blend of star power, strategic thought leadership, and engaging tournament action.
The highlight of BETBY’s presence was the appearance of Magnus Carlsen, five-time World Chess Champion and BETBY’s global brand ambassador, who captivated the audience as the headline speaker of the summit. In an exclusive fireside chat titled “iGaming Chess World Championships – Hosted by Magnus Carlsen & BETBY,” Carlsen joined NEXT.io co-founder and managing-director Pierre Lindh on stage to explore the synergies between chess, poker, and iGaming. The chess GOAT shared personal reflections on his journey from prodigy to world champion, discussed how strategic thinking shaped his mindset, and drew parallels between classic board games and modern betting dynamics, offering a unique perspective that resonated deeply with both chess lovers and iGaming professionals.
Magnus Carlsen’s keynote was followed by a thrilling showpiece: a blindfold chess match against the winner of the inaugural iGaming World Chess Championship, a tournament hosted by BETBY in partnership with the Malta Chess Federation. Open to all delegates, the tournament offered a rare opportunity to go head-to-head in a high-stakes strategic challenge, with the once-in-a-lifetime prize being a live match against Carlsen himself. The tournament underscored BETBY’s commitment to creativity, innovation, and connecting gaming communities in new and exciting ways.
Continuing its thought leadership momentum, BETBY’s Chief Commercial Officer, Chris Nikolopoulos, took the stage on the second day of the event, contributing to a high-level panel discussion titled “LATAM – A flash in the pan or a long-term powerhouse?” Sharing the stage with fellow industry leaders, Nikolopoulos provided insights on the evolving dynamics of Latin America’s iGaming market. Topics included Brazil’s standout role, the growth potential in Colombia and Peru, and strategies for balancing short-term success with long-term sustainability. His participation cemented BETBY’s position as a key voice in the global conversation about emerging market opportunities and investment strategies.
NEXT Summit Valletta 2025 was a celebration of innovation, connection, and cross-industry creativity, with BETBY standing at the heart of it all. From inspiring keynotes and a groundbreaking tournament to meaningful conversations and strategic insights with both existing and potential partners, the event reinforced BETBY’s position as a bold, forward-thinking leader in the iGaming industry.
The post BETBY TAKES CENTER STAGE AT NEXT SUMMIT VALLETTA WITH A STANDOUT APPEARANCE BY MAGNUS CARLSEN appeared first on European Gaming Industry News.
Charles Gillespie
Gambling.com Group Reports First Quarter Results Including Record Revenue and Adjusted EBITDA
Gambling.com Group Limited (Nasdaq: GAMB) (“Gambling.com Group” or the “Company”), a fast-growing provider of marketing and sports data services for the global online gambling industry, today reported financial results for the first quarter ended March 31, 2025.
Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group, commented, “We entered 2025 with our marketing business at all-time highs and with an expanded suite of sports data services having closed the acquisition of OddsJam and OpticOdds on January 1. Since the closing, we have made substantial progress on integrating these offerings into our overall business and the products are performing strongly as expected. With an enhanced sports data services platform, we now have meaningful recurring subscription revenue, which we expect to account for well over 20% of our 2025 revenue, bringing increased revenue visibility and a complimentary, high margin and high growth source of profit and cash flow.
“We are reiterating our full year 2025 guidance despite the unpredictable macro environment, as our services address critical problems for all our customers and our industry is typically insulated from the gyrations of the global economy. We continue to expect 2025 to be another year of record revenue, Adjusted EBITDA and Free Cash Flow as we leverage the skills and expertise of our talented team with a larger product offering to drive growth across all our reporting regions. Each day we are moving closer to our goal of generating $100 million in annual Adjusted EBITDA.”
Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Our first quarter results include record quarterly revenue of $40.6 million and Adjusted EBITDA of $15.9 million, reflecting year-over-year growth of 39% and 56%, respectively. With the solid start to the year, we remain confident in our full year outlook with the midpoints of our guidance for revenue of $172 million and $68 million in Adjusted EBITDA, representing year on year growth of 35% and 40%, respectively.”
Financial Highlights Three Months Ended March 31, 2025 vs. Three Months Ended March 31, 2024
(USD in thousands, except per share data, unaudited)
|
|
Three Months Ended March 31, |
|
Change |
|||||
|
|
2025 |
|
2024 |
|
% |
|||
|
Revenue |
40,635 |
|
|
29,215 |
|
|
39 |
% |
|
Net income for the period attributable to shareholders |
11,236 |
|
|
7,299 |
|
|
54 |
% |
|
Net income per share attributable to shareholders, diluted |
0.31 |
|
|
0.19 |
|
|
63 |
% |
|
Net income margin |
28 |
% |
|
25 |
% |
|
|
|
|
Adjusted net income for the period attributable to shareholders (1) |
16,490 |
|
|
9,264 |
|
|
78 |
% |
|
Adjusted net income per share attributable to shareholders, diluted (1) |
0.46 |
|
|
0.24 |
|
|
92 |
% |
|
Adjusted EBITDA (1) |
15,864 |
|
|
10,159 |
|
|
56 |
% |
|
Adjusted EBITDA Margin (1) |
39 |
% |
|
35 |
% |
|
|
|
|
Cash flows generated by operating activities |
11,415 |
|
|
8,806 |
|
|
30 |
% |
|
Free Cash Flow (1) |
10,277 |
|
|
8,193 |
|
|
25 |
% |
__________
(1) Represents a non-IFRS measure. See “Supplemental Information – Non-IFRS Financial Measures” and the tables at the end of this release for reconciliations to the comparable IFRS numbers.
First Quarter 2024 and Recent Business Highlights
- Delivered more than 138,000 new depositing customers (“NDCs”)
- Completed accretive acquisition of Odds Holdings, Inc. on January 1, 2025 for initial consideration of $70 million in cash and $10 million in ordinary shares
- Expanded credit facility to $165 million with a new syndicate
Three Months Ended March 31, 2025 Results Compared to Three Months Ended March 31, 2024
Revenue rose 39% year-over-year to a record $40.6 million. Revenue from marketing services increased 13% year over year to $30.7 million as the Company delivered more than 138,000 NDCs to clients, a 29% increase over the prior-year period. Revenue from sports data services increased 405% year-over-year to $9.9 million, primarily due to the contribution of OddsJam and OpticOdds following the acquisition on January 1. Recurring subscription revenue represented 24% of total 2025 first quarter revenue.
Gross profit increased 42% to $38.4 million, due to strong revenue growth while cost of sales was in line with the prior-year period reflecting lower cost of sales for media partnerships offset by the addition of cost of sales related to OddsJam and OpticOdds.
Total operating expenses increased 49% to $28.4 million, primarily as a result of increased people costs and higher amortization related to the acquisition of Freebets.com and related assets on April 1, 2024 and the acquisition of Odds Holdings on January 1, 2025.
Net income attributable to shareholders increased $3.9 million to $11.2 million and net income per share was $0.31 compared to $0.19 in the prior-year period. Adjusted net income rose 78% to $16.5 million and Adjusted net income per share increased 92% to $0.46.
Adjusted EBITDA increased 56% to a record $15.9 million, reflecting an Adjusted EBITDA margin of 39% as compared to Adjusted EBITDA of $10.2 million and an Adjusted EBITDA margin of 35% in the prior-year period.
Operating cash flow grew 30% to $11.4 million. Free cash flow increased 25% to $10.3 million, reflecting growth in Adjusted EBITDA partly offset by working capital movements.
2025 Outlook
Gambling.com Group today reiterated the 2025 full-year revenue and Adjusted EBITDA guidance originally provided on February 19, 2025. The Company expects full year revenue of $170 million to $174 million and Adjusted EBITDA of $67 million to $69 million. The midpoints of the new full year revenue and Adjusted EBITDA guidance ranges represent year-over-year growth of 35% and 40%, respectively, and an Adjusted EBITDA margin of 39.5%.
The Company’s guidance assumes:
- Incremental Adjusted EBITDA contributions of approximately $14.5 million related to the acquisition of Odds Holdings, Inc. that was completed on January 1, 2025.
- No additional North American markets coming online over the balance of 2025. While online sports betting is expected to begin in Missouri in the second half of 2025, the Company’s guidance policy excludes any benefits from new state launches until such time as a definitive start date is announced by the appropriate regulatory body.
- An average EUR/USD exchange rate of 1.10 throughout 2025.
Conference Call Details
|
Date/Time: |
Thursday, May 15, 2025, at 8:00 a.m. ET |
||
|
Webcast: |
https://www.webcast-eqs.com/register/Gamb051525/en |
||
|
U.S. Toll-Free Dial In: |
877-407-0890 |
||
|
International Dial In: |
1 201-389-0918 |
The post Gambling.com Group Reports First Quarter Results Including Record Revenue and Adjusted EBITDA appeared first on Gaming and Gambling Industry in the Americas.
SolutionsHub is pleased to announce the promotion of Zita O’Kelly-Hills to Head of Operations, a leadership role central to delivering operational efficiency and scalable business infrastructure across its expanding portfolio.
A former legal professional, Zita brings a unique combination of expertise, operational insight, and leadership maturity to the role. Since joining SolutionsHub, she has steadily expanded her remit—taking on increasingly complex responsibilities in areas such as treasury, governance, and regulatory coordination. Her promotion recognises her significant contributions and the critical role of operations in SolutionsHub’s continued growth.
As Head of Operations, Zita will oversee the day-to-day functioning of the group and lead the refinement of internal systems and processes, while ensuring alignment with the strategic objectives set by the Board.
Zita’s background in legal services informs her disciplined, process-oriented approach, while her aptitude for optimising workflows and driving cross-functional collaboration has already resulted in meaningful improvements to the company’s internal efficiency and governance capabilities. In addition to overseeing essential operational functions, she continues to play a key role in supporting clients with complex governance requirements.
“Zita’s appointment comes at a pivotal time for SolutionsHub,” said Nick Wright, Chief Operating Officer. “Her attention to detail, governance expertise, and ability to bring structure to fast-moving environments make her an invaluable part of our leadership team. This promotion not only recognises her past performance but underscores the central role operations plays in keeping SolutionsHub agile, compliant, and future-focused.
It strengthens our operational foundation and positions us to support growth across both established and emerging service areas.”
The post SolutionsHub Promotes Zita O’Kelly-Hills to Head of Operations Amid Continued Growth appeared first on European Gaming Industry News.
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